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To contribute to the sustainable expansion and diversification of SMEs exports in Tajikistan through increasing the competitiveness of the textile & clothing (T&C) industry and improving the quality management infrastructure of the country. The project will focus on the following four Immediate Objectives: Immediate Objective 1: To support the T&C stakeholders in taking a strategic approach to the sectors development Immediate Objective 2: To enable enterprises, the Government, and sector-related institutions to better understand T&C regional and world market requirements, opportunities and challenges Immediate Objective 3: To improve the capacities of T&C enterprises and sector- related service providers in product development and marketing Immediate Objective 4: To improve the capacity of SQAM, SPS and TBT bodies and the regulatory infrastructure Component 1: Sectoral Assistance Component 2: Quality Management Infrastructure Project Objective and Content

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Project Phasing The project started with a pilot phase and will be followed by three successive implementation phases. Pilot Phase (July 2009-July 2010) Phase I (until Dec 2010) Phase II (until Dec 2011) Phase III (Jan –Dec 2012) The launch of each implementation phase will be subject to the preceding accomplishment of relevant targets with a corresponding set of indicators, deadlines and associated budget.

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Pre-fair activities: Artisanal and T&C companies received individual recommendations on improving product design and development in view of export market requirements and attended a workshop (March-August 2011); Trade fair participation: The Ethical Fashion Show, Paris, France, 1-4 September 2011: Two Tajik artisanal companies – Suman and Haft Paikar; Textillegprom, Moscow, Russia, 27-30 September 2011-Seven Tajik T&C companies; All the companies made commercial contacts and some actual business contracts (detailed presentations on the above fairs will follow); Representative of a local partner BSP the Ministry of Energy and Industry of Tajikistan were part of the Tajik delegation in the above fairs. Dissemination meetings: Meetings were conducted in the Technological University of Tajikistan (Dushanbe and Khujand) to disseminate the results of the Paris Ethical Fashion Show and the Moscow Textillegprom trade fair and to share experiences and lessons learnt with other project beneficiaries. Immediate Objective 3: Performed Activities

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Quality management and productivity: Individual recommendations per company, trained on quality and productivity improvement (July 2011); The participating companies have implemented several recommendations of IC and as result achieved significant improvements as detailed below: Quality (defect rate): Ranging from a drop of 20% to 60%, 7 factories have shown an average drop of 39% in the defect rate, and in many cases defect rate has been observed to be constant. Productivity per worker per shift: 5 factories have shown an approximate average improvement of 21.08% in productivity per worker per shift, ranging from 6% to 40%. In a few cases, a marginal decline in productivity per worker per shift was also observed as result of lack of orders. Use of personal protective equipment: The use of personal protective equipment in many participating factories has been initiated in the form of gloves, masks and uniforms. Improvement in working area: Factories have also put in an effort to improve their work places. One factory has improved its lighting system on the sewing floor and has worked towards improving ventilation in its cutting department. An ongoing working relationship with local consultants and the Technological University of Tajikistan was maintained, involving them in all project activities, seminars and workshops; Local partner BSPs (Kamolot-1 LLC in Dushanbe and Business Consulting LLC in Khujand) involved in implementation of recommendations on improving product design and development and quality management and productivity in the pilot companies; Immediate Objective 3: Performed Activities

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Study tour to two top laboratories in Budapest, Hungary: Organized in March 2011 for personnel from two accredited Tajikstandart food testing laboratories, to exchange experience with their European colleagues, and improve their knowledge on testing specific products. The tour was arranged in cooperation with and co-funded by GIZ PSD project; Working Group (WG) on TBT and SPS: Conducted the 2 nd and 3 rd meetings of the WG on the Transparency Provisions in the WTO Agreements on TBT and SPS in cooperation with the Ministry of Economic Development and Trade; An Action Plan for the WG on SPS and TBT was discussed and finalized during the 3 rd meeting; NEPs/NNA on TBT and SPS: Discussed and finalized the Standard Operating Procedures (SOPs) for the NEPs/NNA on TBT and SPS and the Service Bureau for Tajik exporters and provided assistance for making the NNA and NEPs operational; Prepared the draft National Policy Statements (NPSs) on TBT and SPS Transparency. Immediate Objective 4: Performed Activities

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Analysis of the National Food Safety Management System: Conducted analysis of the Food Safety Management in Tajikistan to identify gaps and duplication of activities among different institutions in the field of food safety. The analytical matrix was discussed and validated with all relevant ministries, agencies and donor-funded projects; Recommendations for improvement of the National Food Safety Management System: Organized a roundtable with stakeholders in the SPS area to discuss ITCs study on the distribution of official roles and responsibilities within Tajikistans food safety control system and facilitate the development of proposals for improving effectiveness and reducing costs to the public and private sectors by streamlining the organizational arrangements made by the government; Organized a senior-executive seminar on Implications of the SPS Agreement for Public Sector Management to identify the main management problems that agencies responsible for SPS issues must face, and examine strategies and techniques that will be helpful in the short and longer term to find solutions to these problems. Immediate Objective 4: Performed Activities

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ITC missions on improving the national quality management infrastructure

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Although T&C sector has a great potential in terms of job generation (especially for women), increasing export volumes, fiscal revenues and poverty reduction, but ITC program is only donor-funded technical assistance project in this sector; Lack of financial resources and high interest rates for making new investments in upgrading of equipment and technology; Lack of qualified specialists (professional managers, designers, pattern makers, technologists, marketing specialists); Limited capacity and resources of the local education institutions to satisfy the current needs of the sector with the relevant and qualified specialists; No efficient partnership between the industry and higher educational schools or technical colleges; Although the sectoral association has been established, but it has very limited capacity and resources to coordinate the stakeholders joint efforts in the fields of education, advocacy, logistical support, communications, exchange of market information, etc. The capability of data collection and analysis in the enterprises needs to be improved significantly... Some major challenges

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Assist T&C companies to prepare for marketing missions and trade fair participation; Assist T&C companies in improving their export management capacities; Continue providing guidance for the implementation of the Action Plan on transparency provisions in the WTO Agreements on TBT and SPS; Organize a study tour for personnel from the National Notification Authority and National Enquiry Points (NNA/NEPs) for TBT and SPS to a WTO member country where the NNA/NEPs are fully operational. Next Steps for 2012